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Stablecoins vs. CBDCs vs. Tokenized Deposits: Comprehensive Comparison
By MCMS Staff
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This comprehensive comparison examines three forms of digital money reshaping institutional finance: stablecoins, central bank digital currencies (CBDCs), and tokenized deposits. Each serves distinct purposes in the evolving monetary system, with different regulatory frameworks, risk profiles, and use cases.
Use this reference to: Evaluate digital money options for treasury management, assess regulatory compliance requirements, understand counterparty and systemic risks, and identify optimal use cases for cross-border payments, settlement infrastructure, and liquidity management.
Legend
High/Strong: Favorable characteristic, low risk, or clear regulatory pathway
Moderate/Developing: Transitioning status, moderate risk, or evolving framework
Low/Uncertain: Unfavorable characteristic, high risk, or unclear regulation
N/A: Not applicable or design-dependent
Foundational Characteristics
| Characteristic | Stablecoin | CBDC | Tokenized Deposit |
|---|---|---|---|
| Definition | Digital cryptocurrency designed to maintain stable value by pegging to fiat currency, commodities, or algorithms | Digital form of a nation's official currency issued and regulated by the central bank | Digital representation of traditional bank deposits recorded on blockchain or distributed ledger technology |
| Issuer | Private companies (Circle, Tether), fintech firms, or DAOs | Central banks (government authorities) | Licensed commercial banks and depository institutions |
| Governance | Private entities or DAOs; third-party auditors | Government/central bank with full sovereign backing | Banking regulators (Federal Reserve, OCC) |
| Legal Status | Not legal tender; varies by jurisdiction | Legal tender with universal acceptance | Bank liability with legal status as traditional deposits |
| Backing/Reserve | Fiat currency (1:1), crypto assets, or algorithmic mechanisms | Central bank's promise; no specific asset backing | Customer deposits on bank's balance sheet; bank reserves |
Definition
Stablecoin
Digital cryptocurrency designed to maintain stable value by pegging to fiat currency, commodities, or algorithms
CBDC
Digital form of a nation's official currency issued and regulated by the central bank
Tokenized Deposit
Digital representation of traditional bank deposits recorded on blockchain or distributed ledger technology
Issuer
Stablecoin
Private companies (Circle, Tether), fintech firms, or DAOs
CBDC
Central banks (government authorities)
Tokenized Deposit
Licensed commercial banks and depository institutions
Governance
Stablecoin
Private entities or DAOs; third-party auditors
CBDC
Government/central bank with full sovereign backing
Tokenized Deposit
Banking regulators (Federal Reserve, OCC)
Legal Status
Stablecoin
Not legal tender; varies by jurisdiction
CBDC
Legal tender with universal acceptance
Tokenized Deposit
Bank liability with legal status as traditional deposits
Backing/Reserve
Stablecoin
Fiat currency (1:1), crypto assets, or algorithmic mechanisms
CBDC
Central bank's promise; no specific asset backing
Tokenized Deposit
Customer deposits on bank's balance sheet; bank reserves
Regulatory & Legal Framework
| Characteristic | Stablecoin | CBDC | Tokenized Deposit |
|---|---|---|---|
| Regulatory Oversight | Developing environment; GENIUS Act (2025) in US sets federal framework | Full central bank regulation and supervision | Banking regulations including capital requirements |
| Deposit Insurance | Not FDIC insured; issuer-specific risk | N/A; direct central bank liability reduces risk | FDIC insured up to $250,000 (US) |
| AML/CFT Compliance | Varies by issuer; improving with regulation | Built-in compliance; enhanced monitoring | Strong; embedded at banking layer |
| Consumer Protection | Limited; no deposit insurance | Strong; sovereign backing and legal tender status | Strong; FDIC insurance and banking regulations |
Regulatory Oversight
Stablecoin
Developing environment; GENIUS Act (2025) in US sets federal framework
CBDC
Full central bank regulation and supervision
Tokenized Deposit
Banking regulations including capital requirements
Deposit Insurance
Stablecoin
Not FDIC insured; issuer-specific risk
CBDC
N/A; direct central bank liability reduces risk
Tokenized Deposit
FDIC insured up to $250,000 (US)
AML/CFT Compliance
Stablecoin
Varies by issuer; improving with regulation
CBDC
Built-in compliance; enhanced monitoring
Tokenized Deposit
Strong; embedded at banking layer
Consumer Protection
Stablecoin
Limited; no deposit insurance
CBDC
Strong; sovereign backing and legal tender status
Tokenized Deposit
Strong; FDIC insurance and banking regulations
Technical Infrastructure
| Characteristic | Stablecoin | CBDC | Tokenized Deposit |
|---|---|---|---|
| Technology Platform | Public or private blockchains; distributed ledgers | Blockchain or centralized database; often centralized | Blockchain/DLT; typically permissioned networks |
| Settlement Speed | Near-instant; real-time on blockchain networks | Real-time settlement capability; instant transactions | Instant settlement with atomic transactions |
| Transaction Hours | 24/7/365; unrestricted by banking hours | 24/7 depending on design | 24/7 on-chain availability |
| Programmability | Fully programmable via smart contracts | Programmable; potential for conditional payments | Highly programmable; automated workflows |
| Interoperability | High; works across multiple platforms | Limited; requires standardization and bilateral agreements | Limited between banks; requires interbank settlement |
| Scalability | Blockchain-dependent; can face congestion | Design-dependent; can be optimized | Leverages banking infrastructure |
Technology Platform
Stablecoin
Public or private blockchains; distributed ledgers
CBDC
Blockchain or centralized database; often centralized
Tokenized Deposit
Blockchain/DLT; typically permissioned networks
Settlement Speed
Stablecoin
Near-instant; real-time on blockchain networks
CBDC
Real-time settlement capability; instant transactions
Tokenized Deposit
Instant settlement with atomic transactions
Transaction Hours
Stablecoin
24/7/365; unrestricted by banking hours
CBDC
24/7 depending on design
Tokenized Deposit
24/7 on-chain availability
Programmability
Stablecoin
Fully programmable via smart contracts
CBDC
Programmable; potential for conditional payments
Tokenized Deposit
Highly programmable; automated workflows
Interoperability
Stablecoin
High; works across multiple platforms
CBDC
Limited; requires standardization and bilateral agreements
Tokenized Deposit
Limited between banks; requires interbank settlement
Scalability
Stablecoin
Blockchain-dependent; can face congestion
CBDC
Design-dependent; can be optimized
Tokenized Deposit
Leverages banking infrastructure
Privacy & Transparency
| Characteristic | Stablecoin | CBDC | Tokenized Deposit |
|---|---|---|---|
| Privacy/Anonymity | Variable; greater privacy than traditional banking; some pseudonymous | Low anonymity; enhanced traceability; potential surveillance | Limited; requires KYC/AML at bank level |
| Transparency | Variable; depends on issuer; some lack reserve transparency | High traceability; central bank monitoring | Bank-level transparency; regulatory reporting; audit trails |
Privacy/Anonymity
Stablecoin
Variable; greater privacy than traditional banking; some pseudonymous
CBDC
Low anonymity; enhanced traceability; potential surveillance
Tokenized Deposit
Limited; requires KYC/AML at bank level
Transparency
Stablecoin
Variable; depends on issuer; some lack reserve transparency
CBDC
High traceability; central bank monitoring
Tokenized Deposit
Bank-level transparency; regulatory reporting; audit trails
Accessibility & Reach
| Characteristic | Stablecoin | CBDC | Tokenized Deposit |
|---|---|---|---|
| Accessibility | Global; 24/7; no bank account required; accessible to unbanked | Defined by central bank policy; may require identity verification | Requires bank relationship; limited to bank customers |
| Cross-Border Use | Excellent; primary use case; lower costs than traditional rails | Typically domestic; cross-border requires bilateral agreements | Possible but primarily domestic; designed for bank clients |
| Geographic Reach | Global; borderless by design | National focus; cross-border requires cooperation | Bank-dependent; typically national or regional |
Accessibility
Stablecoin
Global; 24/7; no bank account required; accessible to unbanked
CBDC
Defined by central bank policy; may require identity verification
Tokenized Deposit
Requires bank relationship; limited to bank customers
Cross-Border Use
Stablecoin
Excellent; primary use case; lower costs than traditional rails
CBDC
Typically domestic; cross-border requires bilateral agreements
Tokenized Deposit
Possible but primarily domestic; designed for bank clients
Geographic Reach
Stablecoin
Global; borderless by design
CBDC
National focus; cross-border requires cooperation
Tokenized Deposit
Bank-dependent; typically national or regional
Financial Characteristics
| Characteristic | Stablecoin | CBDC | Tokenized Deposit |
|---|---|---|---|
| Interest/Yield | Typically does not pay interest; some variants may offer yield | May pay interest (design choice); affects monetary policy | Can pay interest like traditional deposits |
| Transaction Costs | Low on-chain fees; competitive for cross-border (<1%) | Low or zero fees possible; depends on central bank policy | Higher compliance costs but reduced settlement costs |
| Liquidity Impact | Removes liquidity from traditional banking | Can cause deposit flight from banks | Maintains bank liquidity for lending operations |
| Credit Creation Impact | Does not support credit creation; passive reserves | Reduces commercial bank deposits and credit capacity | Maintains fractional reserve banking; supports lending |
| Monetary Policy Impact | Can undermine local monetary policy if widely adopted | Direct monetary policy tool; enhances transmission | Indirect impact; maintains bank role in money creation |
Interest/Yield
Stablecoin
Typically does not pay interest; some variants may offer yield
CBDC
May pay interest (design choice); affects monetary policy
Tokenized Deposit
Can pay interest like traditional deposits
Transaction Costs
Stablecoin
Low on-chain fees; competitive for cross-border (<1%)
CBDC
Low or zero fees possible; depends on central bank policy
Tokenized Deposit
Higher compliance costs but reduced settlement costs
Liquidity Impact
Stablecoin
Removes liquidity from traditional banking
CBDC
Can cause deposit flight from banks
Tokenized Deposit
Maintains bank liquidity for lending operations
Credit Creation Impact
Stablecoin
Does not support credit creation; passive reserves
CBDC
Reduces commercial bank deposits and credit capacity
Tokenized Deposit
Maintains fractional reserve banking; supports lending
Monetary Policy Impact
Stablecoin
Can undermine local monetary policy if widely adopted
CBDC
Direct monetary policy tool; enhances transmission
Tokenized Deposit
Indirect impact; maintains bank role in money creation
Risk Profile
| Characteristic | Stablecoin | CBDC | Tokenized Deposit |
|---|---|---|---|
| Counterparty Risk | Issuer credit risk; reserve quality risk; potential depegging | Minimal; backed by central bank (sovereign risk only) | Bank counterparty risk; mitigated by deposit insurance |
| Volatility Risk | Generally stable but depegging possible (e.g., TerraUSD collapse) | Stable; maintains value relative to fiat currency | Stable; 1:1 with fiat; protected by banking regulations |
| Run Risk | 3-4% annual run risk for major stablecoins; susceptible to panic | Lower; central bank can provide unlimited liquidity | Lower; protected by deposit insurance and CB lending |
| Financial Stability Risk | Potential systemic risk if widely adopted; may trigger runs | Risk of rapid deposit flight from commercial banks | Lower systemic risk; contained within regulated banking |
Counterparty Risk
Stablecoin
Issuer credit risk; reserve quality risk; potential depegging
CBDC
Minimal; backed by central bank (sovereign risk only)
Tokenized Deposit
Bank counterparty risk; mitigated by deposit insurance
Volatility Risk
Stablecoin
Generally stable but depegging possible (e.g., TerraUSD collapse)
CBDC
Stable; maintains value relative to fiat currency
Tokenized Deposit
Stable; 1:1 with fiat; protected by banking regulations
Run Risk
Stablecoin
3-4% annual run risk for major stablecoins; susceptible to panic
CBDC
Lower; central bank can provide unlimited liquidity
Tokenized Deposit
Lower; protected by deposit insurance and CB lending
Financial Stability Risk
Stablecoin
Potential systemic risk if widely adopted; may trigger runs
CBDC
Risk of rapid deposit flight from commercial banks
Tokenized Deposit
Lower systemic risk; contained within regulated banking
Use Cases & Market Status
| Characteristic | Stablecoin | CBDC | Tokenized Deposit |
|---|---|---|---|
| Primary Use Cases | Cross-border payments, remittances, crypto trading, DeFi, payments in volatile currency regions | Monetary policy implementation, financial inclusion, government payments, domestic retail payments | Trade finance, supply chain financing, treasury management, B2B payments, FX settlement |
| Innovation Potential | High; drives DeFi innovation and new financial products | Moderate; constrained by public policy objectives | Moderate to high; bridges traditional banking and blockchain |
| Market Maturity | Mature; $193-305B market cap (2024-2025); $27+T annual volume | Pilot stage; Bahamas, Jamaica, Nigeria launched; 134+ countries researching | Emerging; limited deployment; growing institutional interest |
| Implementation Status (2025) | Widely implemented; major players: USDT, USDC, PYUSD | Mostly pilot/research phase; few live deployments | Early adoption; pilots: JPMorgan (JPM Coin), SocGen (EURCV) |
Primary Use Cases
Stablecoin
Cross-border payments, remittances, crypto trading, DeFi, payments in volatile currency regions
CBDC
Monetary policy implementation, financial inclusion, government payments, domestic retail payments
Tokenized Deposit
Trade finance, supply chain financing, treasury management, B2B payments, FX settlement
Innovation Potential
Stablecoin
High; drives DeFi innovation and new financial products
CBDC
Moderate; constrained by public policy objectives
Tokenized Deposit
Moderate to high; bridges traditional banking and blockchain
Market Maturity
Stablecoin
Mature; $193-305B market cap (2024-2025); $27+T annual volume
CBDC
Pilot stage; Bahamas, Jamaica, Nigeria launched; 134+ countries researching
Tokenized Deposit
Emerging; limited deployment; growing institutional interest
Implementation Status (2025)
Stablecoin
Widely implemented; major players: USDT, USDC, PYUSD
CBDC
Mostly pilot/research phase; few live deployments
Tokenized Deposit
Early adoption; pilots: JPMorgan (JPM Coin), SocGen (EURCV)
Key Advantages & Disadvantages
| Characteristic | Stablecoin | CBDC | Tokenized Deposit |
|---|---|---|---|
| Key Advantages |
|
|
|
| Key Disadvantages |
|
|
|
Key Advantages
Stablecoin
- Global accessibility
- Lower transaction costs
- Financial inclusion
- 24/7 availability
- DeFi innovation
CBDC
- Legal tender status
- Central bank backing
- Monetary policy tool
- Enhanced financial stability
Tokenized Deposit
- FDIC insurance
- Regulatory compliance
- Bank integration
- Interest-bearing capability
Key Disadvantages
Stablecoin
- Regulatory uncertainty
- No deposit insurance
- Depegging risk
- Reserve transparency concerns
CBDC
- Privacy concerns
- Potential bank disintermediation
- Implementation costs
- Surveillance risk
Tokenized Deposit
- Limited accessibility (bank account required)
- Less global reach
- Tied to bank solvency
Institutional Implications
Each form of digital money serves distinct purposes in the evolving monetary system. Rather than competing directly, they may coexist as complementary infrastructure:
- →Stablecoins will likely dominate cross-border remittances and DeFi applications where speed, low cost, and global accessibility outweigh regulatory certainty.
- →CBDCs will serve domestic retail payments and government disbursements, providing central banks with enhanced monetary policy control and financial inclusion tools.
- →Tokenized deposits will enable institutional treasury operations, supply chain finance, and programmable B2B settlements where regulatory compliance and bank integration are essential.
For treasury and compliance teams: The optimal choice depends on specific use cases, regulatory requirements, counterparty risk tolerance, and operational infrastructure. Multi-format strategies—using different digital money types for different purposes—will likely become standard practice as the market matures.
References & Sources
This comparison synthesizes research from central banks (BIS, Federal Reserve, ECB, Bank of England), regulatory bodies (FDIC, OCC, SEC), industry analysis (JPMorgan, McKinsey, Fireblocks), and academic institutions. All data current as of November 2025.
Document Information: Published November 10, 2025 | Classification: Public | Last Updated: November 10, 2025
© 2025 Make Crypto Make Sense. This comparison table is provided for informational and educational purposes only and does not constitute investment, legal, or financial advice.
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MCMS Brief • Classification: Public • Sector: Digital Assets • Region: Global
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